PARIS, Feb. 8, 2022
/PRNewswire/ -- Sequans Communications S.A. (NYSE: SQNS), a leading
developer and provider of 5G/4G solutions for IoT devices, today
announced financial results for the fourth quarter and full year
ended December 31, 2021.
Fourth Quarter and Full Year 2021 Summary Results
Table:
|
(in US$ millions,
except share and per share data)
|
Q4
2021
|
Q3 2021
|
Q4 2020
|
Full year
2021
|
Full year
2020
|
|
Revenue
|
$13.8
|
$11.9
|
$15.8
|
$50.9
|
$50.9
|
|
Gross
profit
|
7.9
|
5.8
|
7.1
|
27.2
|
23.5
|
|
Gross margin
(%)
|
57.1
%
|
49.2 %
|
45.1 %
|
53.4
%
|
46.1 %
|
|
Operating
loss
|
(4.0)
|
(5.1)
|
(5.4)
|
(18.3)
|
(24.7)
|
|
Net Profit
(Loss)
|
(7.7)
|
0.2
|
(11.3)
|
(20.3)
|
(54.5)
|
|
Diluted earnings
(loss) per ADS
|
($0.21)
|
$—
|
($0.36)
|
($0.55)
|
($1.94)
|
|
Non-IFRS diluted
earnings per ADS *
|
($0.09)
|
($0.14)
|
($0.28)
|
($0.53)
|
($1.17)
|
|
Weighted average
number of diluted ADS
|
37,497,367
|
41,024,405
|
31,044,769
|
36,672,946
|
28,108,247
|
|
* See Use of
Non-IFRS/non-GAAP Financial Measures disclosure on page 3. IFRS Net
Profit (Loss) includes significant non-cash interest expense and
change in value of embedded derivative that are excluded from
Non-IFRS measures
|
"Sequans exited 2021 with growing momentum in our Massive IoT
and CBRS Broadband businesses, setting us up for improved results
for 2022 as more design wins in our pipeline move to mass
production, " said Georges Karam,
CEO of Sequans. "Fourth quarter revenue grew by 16.1% sequentially
and, when adjusted to exclude last year's Jetpack contribution
(1), increased by 61.4% year-over-year, mainly driven by
Massive IoT and CBRS Broadband. While supply chain constraints
remain a potential disruptor, we have improved visibility at this
time for sufficient capacity to meet our customer demand in 2022,
as the majority of the anticipated shortfall has been resolved.
"Our expanded partnership with Renesas strengthens our
go-to-market opportunities for our products and provides an
opportunity to reduce our manufacturing costs and increase supply
capacity," continued Mr. Karam. "Sequans' family of MCU and channel
partners, with their globally recognized brands, are the foundation
of our go-to-market strategy and important growth drivers for us
that are expected to accelerate in 2022. We are entering 2022 with
a record backlog, and our pipeline now exceeds $650 million of potential product revenue, of
which design wins represent almost 50%. We are extending our
success in 2021 with our CAT-M Monarch 2 platform and enjoying an
enthusiastic response to the recent launch of our CAT-1 Calliope 2
solution. At this time, around 80% of our design wins are for
Massive IoT applications, where we are engaged in over 100
projects, many with high-profile, Tier-1 customers."
Mr. Karam concluded, "My team and I are committed to expanding
our 5G Massive IoT and Broadband IoT leadership, leveraging our
relationships with our strategic partners and channels and
maximizing value for shareholders. As stated on our last earnings
call, Sequans is exploring options to finance our 5G investment. We
are engaged in productive dialogs with potential strategic partners
and are encouraged by their level of interest. Our proven track
record of closing strategic deals reinforces our confidence in
reaching a mutually beneficial agreement with a new 5G
partner."
Q1 2022 Outlook
The following statement is based on management's current
assumptions and expectations and assumes no increase in the
severity or duration of the COVID-19 pandemic. This statement is
forward-looking and actual results may differ materially.
Taking into consideration current customer demand and
expectations for component availability, management is targeting
revenues to be flat for the quarter ending March 31, 2022, despite the historically
seasonally lower activity in the first quarter, with a lower
operating loss.
|
____________________
|
|
(1) Revenues from the
Verizon Jetpack were $7.2 million in the fourth quarter of 2020.
There were no revenues from the Verizon Jetpack in the fourth
quarter of 2021
|
Fourth Quarter and Full Year 2021 Highlights:
Revenue: Revenue was $13.8
million, an increase of 16.1% compared to the third quarter
of 2021 and a decrease of 12.5% compared to the fourth quarter of
2020. Full-year revenue was $50.9
million for each 2021 and 2020.
Gross margin: Gross margin was 57.1% compared to 49.2% in
the third quarter of 2021 and compared to 45.1% in the fourth
quarter of 2020. Full-year gross margin increased from 46.1% in
2020 to 53.4% in 2021.
Operating loss: Operating loss was $4.0 million compared to $5.1 million in the third quarter of 2021 and
$5.4 million in the fourth quarter of
2020. Full year operating loss for 2021 was $18.3 million compared to $24.7 million for 2020.
Net profit / loss: Net loss was $7.7 million, or ($0.21) per diluted ADS, compared to net profit
of $0.2 million, or $0.01 per ADS, in the third quarter of 2021 and a
net loss of $11.3 million, or
($0.36) per ADS, in the fourth
quarter of 2020. Net loss in the fourth quarter of 2021 includes a
$1.2 million loss on the change in
fair value of the convertible debt derivative whereas in the third
quarter there was a gain of $7.7
million. Full year net loss for 2021 was $20.3 million, or ($0.55) per ADS, compared to $54.5 million, or ($1.94) per ADS, for 2020. Net loss for the full
year includes a $3.8 million gain on
the change in fair value of the convertible debt derivative whereas
in 2020 there was a loss of $13.1
million.
Net loss and diluted loss per ADS: Excluding
the non-cash stock-based compensation, the non-cash impact of the
fair-value and effective interest adjustments related to the
convertible debt with embedded derivatives and other financings,
the non-cash impact of convertible debt amendments, and deferred
tax benefit or expense related to the convertible debt and other
financings, non-IFRS net loss was $3.5
million, or ($0.09) per ADS,
compared to $5.3 million, or
($0.14) per ADS in the third quarter
of 2021, and $8.5 million, or
($0.28) per ADS, in the fourth
quarter of 2020. The non-IFRS net loss includes foreign exchange
gains of $118,000, or less than
$0.01 per ADS, in the fourth quarter
of 2021 and $409,000, or ($0.01) per ADS, in the third quarter of 2021 and
a foreign exchange loss of $1.9
million, or ($0.06) per ADS,
in the fourth quarter of 2020. Full year non-IFRS net loss for 2021
was $19.5 million, or ($0.53) per ADS, compared to $33.0 million, or ($1.17) per ADS in 2020. Full year non-IFRS net
loss for 2021 includes foreign exchange gains of $921,000, or $0.03
per ADS, compared with foreign exchange losses of $2.7 million, or ($0.09) per ADS, in 2020.
Cash: Cash and cash equivalents and short-term deposits
at December 31, 2021 totaled
$4.8 million compared to $18.5 million at December
31, 2020. The balance at the end of 2021 does not reflect
$16.7 million received after
December 31, 2021 in proceeds from
the Renesas strategic agreement and investment announced in
January 2022.
Conference Call and Webcast
Sequans plans to conduct a teleconference and live webcast to
discuss the financial results for the fourth quarter of 2021 today,
February 8, 2022 at 8:00 a.m. ET
/14:00 CET. To participate in the
live call, analysts and investors should dial 877-407-0792 or +1
201-689-8263 if outside the U.S. When prompted, provide the event
title or access code: 13725431. A live and archived
webcast of the call will be available from the Investors section of
the Sequans website at
https://www.sequans.com/company/investor-relations/webcasts-and-presentations/.
An audio replay of the conference call will be available until
February 22, 2022 by dialing toll
free 844-512-2921 or 412-317-6671 from outside the U.S., using the
following access code: 13725431.
Forward Looking Statements
This press release contains projections and other
forward-looking statements regarding future events or our future
financial performance and potential financing sources. All
statements other than present and historical facts and conditions
contained in this release, including any statements regarding
future results of operations and financial positions, business
strategy and plans, including financing alternatives for our 5G
business and ability to enter into a new 5G strategic agreement,
expectations for Massive IoT sales, the impact of the Covid-19 on
our supply chain and on customer demand, our expectation for
sufficient capacity to meet customer demand in 2022, the impact of
component shortages and manufacturing capacity, our ability to
convert our pipeline to revenue and our objectives for future
operations, are forward-looking statements (within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended). These statements are
only predictions and reflect our current beliefs and expectations
with respect to future events and are based on assumptions and
subject to risk and uncertainties and subject to change at any
time. We undertake no obligation to update the information made in
this release in the event facts or circumstances subsequently
change after the date of this press release. We operate in a very
competitive and rapidly changing environment. New risks emerge from
time to time. Given these risks and uncertainties, you should not
rely on or place undue reliance on these forward-looking
statements. Actual events or results may differ materially from
those contained in the projections or forward-looking statements.
In addition to the risk factors contained in our Form 20-F for the
fiscal year ended December 31, 2020,
some of the factors that could cause actual results to differ
materially from the forward-looking statements contained herein
include, without limitation: (i) the contraction or lack of growth
of markets in which we compete and in which our products are sold,
(ii) unexpected increases in our expenses, including manufacturing
expenses, (iii) our inability to adjust spending quickly enough to
offset any unexpected revenue shortfall, (iv) delays or
cancellations in spending by our customers, (v) unexpected average
selling price reductions, (vi) the significant fluctuation to which
our quarterly revenue and operating results are subject due to
cyclicality in the wireless communications industry and transitions
to new process technologies, (vii) our inability to anticipate the
future market demands and future needs of our customers, (viii) our
inability to achieve new design wins or for design wins to result
in shipments of our products at levels and in the timeframes we
currently expect, (ix) our inability to enter into and execute on
strategic alliances, (x) our ability to meet performance milestones
under strategic license agreements, (xi) the impact of natural
disasters on our sourcing operations and supply chain, (xii) the
impact of Covid-19 on the ability to operate our business and
research, production of our products or demand for our products by
customers whose supply chain is impacted or whose operations have
been impacted by government shelter-in-place or similar orders,
(xiii) our ability to raise debt and equity financing, and (xv)
other factors detailed in documents we file from time to time with
the Securities and Exchange Commission.
Use of Non-IFRS/non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
prepared in accordance with IFRS, we disclose certain non-IFRS, or
non-GAAP, financial measures. These measures exclude the
non-cash stock-based compensation and the non-cash impacts of
convertible debt amendments, conversions and repayments, effective
interest adjustments related to the convertible debt with embedded
derivatives and other financings; and deferred tax benefit or
expense related to the convertible debt and other financings.
We believe that these measures can be useful to facilitate
comparisons among different companies. These non-GAAP
measures have limitations in that the non-GAAP measures we use may
not be directly comparable to those reported by other
companies. We seek to compensate for this limitation by
providing a reconciliation of the non-GAAP financial measures to
the most directly comparable IFRS measures in the table attached to
this press release.
About Sequans Communications
Sequans Communications S.A. (NYSE: SQNS) is a leading developer
and provider of 5G and 4G chips and modules for IoT devices. For
5G/4G massive IoT applications, Sequans provides a comprehensive
product portfolio based on its flagship Monarch LTE-M/NB-IoT and
Calliope Cat 1 chip platforms, featuring industry-leading low power
consumption, a large set of integrated functionalities, and global
deployment capability. For 5G/4G broadband and critical IoT
applications, Sequans offers a product portfolio based on its
Cassiopeia 4G Cat 4/Cat 6 and planned high-end Taurus 5G chip
platforms, optimized for low-cost residential, enterprise, and
industrial applications. Founded in 2003, Sequans is based in
Paris, France with additional
offices in the United States,
United Kingdom, Israel, Hong
Kong, Singapore,
Finland, Taiwan, South
Korea, and China.
Visit Sequans online
at www.sequans.com; www.facebook.com/sequans; www.twitter.com/sequans
Media Relations: Kimberly
Tassin, +1.425.736.0569, Kimberly@sequans.com
Investor Relations: Kimberly Rogers,
+1 385.831-7337, krogers@sequans.com
Condensed financial tables follow
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three months
ended
|
|
(in thousands of
US$, except share and per share amounts)
|
Dec 31,
2021
|
|
September 30,
2021
|
|
Dec 31,
2020
|
|
|
|
|
|
|
|
|
|
|
Revenue
:
|
|
|
|
|
|
|
Product
revenue
|
$
6,924
|
|
$
7,545
|
|
$
12,064
|
|
Services and license
revenue
|
6,886
|
|
4,346
|
|
3,727
|
|
Total
revenue
|
13,810
|
|
11,891
|
|
15,791
|
|
Cost of
revenue
|
5,922
|
|
6,043
|
|
8,677
|
|
Gross
profit
|
7,888
|
|
5,848
|
|
7,114
|
|
Operating expenses
:
|
|
|
|
|
|
|
Research and
development
|
6,678
|
|
6,634
|
|
7,938
|
|
Sales and
marketing
|
2,342
|
|
2,116
|
|
2,003
|
|
General and
administrative
|
2,897
|
|
2,181
|
|
2,606
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
11,917
|
|
10,931
|
|
12,547
|
|
Operating
loss
|
(4,029)
|
|
(5,083)
|
|
(5,433)
|
|
Financial income
(expense):
|
|
|
|
|
|
|
Interest income
(expense), net
|
(2,475)
|
|
(2,685)
|
|
(3,643)
|
|
Change in fair value
of convertible debt derivative
|
(1,176)
|
|
7,706
|
|
111
|
|
Foreign exchange gain
(loss)
|
122
|
|
409
|
|
(1,936)
|
|
Loss before income
taxes
|
(7,558)
|
|
347
|
|
(10,901)
|
|
Income tax
expense
|
173
|
|
155
|
|
361
|
|
Profit
(Loss)
|
$
(7,731)
|
|
$
192
|
|
$
(11,262)
|
|
Attributable to
:
|
|
|
|
|
|
|
Shareholders of the
parent
|
(7,731)
|
|
192
|
|
(11,262)
|
|
Minority
interests
|
—
|
|
—
|
|
—
|
|
Basic loss per
ADS
|
($0.21)
|
|
$0.01
|
|
($0.36)
|
|
Diluted loss per
ADS
|
($0.21)
|
|
$—
|
|
($0.36)
|
|
Weighted average
number of ADS used for computing:
|
|
|
|
|
|
|
— Basic
|
37,497,367
|
|
37,382,595
|
|
31,044,769
|
|
— Diluted
|
37,497,367
|
|
41,024,405
|
|
31,044,769
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Twelve months
ended Dec 31,
|
|
(in thousands of
US$, except share and per share amounts)
|
2021
|
|
2020
|
|
|
|
|
|
Revenue
:
|
|
|
|
|
Product
revenue
|
$
30,410
|
|
$
37,919
|
|
Services and license
revenue
|
20,469
|
|
12,997
|
|
Total
revenue
|
50,879
|
|
50,916
|
|
Cost of
revenue
|
23,690
|
|
27,466
|
|
Gross
profit
|
27,189
|
|
23,450
|
|
Operating expenses
:
|
|
|
|
|
Research and
development
|
26,414
|
|
30,855
|
|
Sales and
marketing
|
9,049
|
|
7,912
|
|
General and
administrative
|
10,045
|
|
9,369
|
|
|
|
|
|
|
Total operating
expenses
|
45,508
|
|
48,136
|
|
Operating
loss
|
(18,319)
|
|
(24,686)
|
|
Financial income
(expense):
|
|
|
|
|
Interest income
(expense), net
|
(11,282)
|
|
(14,474)
|
|
Change in fair value
of convertible debt derivative
|
3,848
|
|
(13,129)
|
|
Impact of debt
reimbursement
|
5,177
|
|
1,399
|
|
Foreign exchange gain
(loss)
|
925
|
|
(2,650)
|
|
Loss before income
taxes
|
(19,651)
|
|
(53,540)
|
|
Income tax
expense
|
625
|
|
936
|
|
Profit
(Loss)
|
$
(20,276)
|
|
$
(54,476)
|
|
Attributable to
:
|
|
|
|
|
Shareholders of the
parent
|
(20,276)
|
|
(54,476)
|
|
Minority
interests
|
—
|
|
—
|
|
Basic loss per
ADS
|
($0.55)
|
|
($1.94)
|
|
Diluted loss per
ADS
|
($0.55)
|
|
($1.94)
|
|
Weighted average
number of ADS used for computing:
|
|
|
|
|
— Basic
|
36,672,946
|
|
28,108,247
|
|
— Diluted
|
36,672,946
|
|
28,108,247
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
|
At Dec
31,
|
|
At Dec
31,
|
|
(in thousands of
US$)
|
2021
|
|
2020
(1)
|
|
ASSETS
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
$
7,862
|
|
$
9,187
|
|
Intangible
assets
|
38,132
|
|
25,312
|
|
Deposits and other
receivables
|
2,311
|
|
588
|
|
Other non-current
financial assets
|
357
|
|
386
|
|
Total non-current
assets
|
48,662
|
|
35,473
|
|
Current
assets
|
|
|
|
|
Inventories
|
6,433
|
|
6,225
|
|
Trade
receivables
|
13,622
|
|
17,277
|
|
Contract
assets
|
789
|
|
371
|
|
Prepaid
expenses
|
2,108
|
|
962
|
|
Other
receivables
|
7,197
|
|
3,264
|
|
Research tax credit
receivable
|
5,918
|
|
5,110
|
|
Short-term
deposits
|
—
|
|
10,900
|
|
Cash and cash
equivalents
|
4,835
|
|
7,574
|
|
Total current
assets
|
40,902
|
|
51,683
|
|
Total
assets
|
$
89,564
|
|
$
87,156
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Equity
|
|
|
|
|
Issued capital, euro
0.02 nominal value, 151,419,322 shares authorized, issued and
outstanding at December 31, 2021 (133,934,090 shares at
December 31, 2020)
|
$
3,687
|
|
$
3,269
|
|
Share
premium
|
298,389
|
|
276,560
|
|
Other capital
reserves
|
57,198
|
|
46,677
|
|
Accumulated
deficit
|
(383,485)
|
|
(363,209)
|
|
Other components of
equity
|
(95)
|
|
(103)
|
|
Total
equity
|
(24,306)
|
|
(36,806)
|
|
Non-current
liabilities
|
|
|
|
|
Government grant
advances, loans and other liabilities
|
9,354
|
|
11,203
|
|
Venture
debt
|
—
|
|
2,172
|
|
Convertible
debt
|
36,373
|
|
26,074
|
|
Convertible debt
embedded derivative
|
10,081
|
|
12,395
|
|
Lease
liabilities
|
3,373
|
|
4,762
|
|
Trade
payables
|
964
|
|
851
|
|
Provisions
|
2,137
|
|
1,554
|
|
Deferred tax
liabilities
|
138
|
|
19
|
|
Contract
liabilities
|
214
|
|
2,397
|
|
Total non-current
liabilities
|
62,634
|
|
61,427
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
13,916
|
|
15,701
|
|
Interest-bearing
receivables financing
|
9,518
|
|
14,228
|
|
Venture
debt
|
—
|
|
6,104
|
|
Lease
liabilities
|
1,247
|
|
1,014
|
|
Government grant
advances and loans
|
6,206
|
|
3,867
|
|
Contract
liabilities
|
10,693
|
|
13,145
|
|
Other current
liabilities and provisions
|
9,656
|
|
8,476
|
|
Total current
liabilities
|
51,236
|
|
62,535
|
|
Total equity and
liabilities
|
$
89,564
|
|
$
87,156
|
|
(1) 2020 amounts
restated to reflect the impact of application of the IFRS IC
decision on IAS 19
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
Twelve months
ended Dec 31,
|
|
(in thousands of
US$)
|
2021
|
|
2020
|
|
Operating
activities
|
|
|
|
|
Loss before income
taxes
|
$
(19,651)
|
|
$
(53,540)
|
|
Non-cash adjustment
to reconcile income before tax to net cash from (used in) operating
activities
|
|
|
|
|
|
Depreciation and
impairment of property, plant and equipment
|
3,521
|
|
3,755
|
|
|
Amortization and
impairment of intangible assets
|
7,051
|
|
6,018
|
|
|
Share-based payment
expense
|
5,135
|
|
2,985
|
|
|
Increase in
provisions
|
474
|
|
112
|
|
|
Interest expense,
net
|
11,285
|
|
14,474
|
|
|
Change in the fair
value of convertible debt embedded derivative
|
(3,848)
|
|
13,129
|
|
|
Impact of debt
reimbursement
|
(5,177)
|
|
—
|
|
|
Convertible debt
amendment
|
—
|
|
(1,399)
|
|
|
Foreign exchange loss
(gain)
|
(1,053)
|
|
2,749
|
|
|
Loss (Gain) on
disposal of property, plant and equipment
|
48
|
|
6
|
|
|
Bad debt
expense
|
65
|
|
4
|
|
Working capital
adjustments
|
|
|
|
|
|
Decrease (Increase)
in trade receivables and other receivables
|
1,421
|
|
(8,703)
|
|
|
Decrease (increase)
in inventories
|
(208)
|
|
439
|
|
|
Increase in
research tax credit receivable
|
(4,037)
|
|
(718)
|
|
|
Increase in trade
payables and other liabilities
|
4,741
|
|
6,216
|
|
|
Decrease in contract
liabilities
|
(6,791)
|
|
(4,897)
|
|
|
Increase (Decrease)
in government grant advances (1)
|
(1,387)
|
|
270
|
|
Income tax
paid
|
(346)
|
|
(286)
|
|
Net cash flow
provided by (used in) operating activities
|
(8,757)
|
|
(19,386)
|
|
Investing
activities
|
|
|
|
|
Purchase of
intangible assets and property, plant and equipment
|
(9,544)
|
|
(6,566)
|
|
Capitalized
development expenditures
|
(19,075)
|
|
(7,209)
|
|
Purchase of financial
assets
|
(1,694)
|
|
(116)
|
|
Decrease (increase)
of short-term deposit
|
10,900
|
|
(10,900)
|
|
Interest
received
|
47
|
|
29
|
|
Net cash flow used
in investments activities
|
(19,366)
|
|
(24,762)
|
|
Financing
activities
|
|
|
|
|
Proceeds from issue
of warrants, exercise of stock options/warrants
|
138
|
|
32
|
|
Public equity
offering proceeds, net of transaction costs paid
|
9,852
|
|
29,272
|
|
Proceeds (Repayment
of) from interest-bearing receivables financing
|
21
|
|
9,914
|
|
Proceeds from
convertible debt, net of transaction cost
|
39,682
|
|
2,050
|
|
Proceeds from
government loans, net of transaction cost
|
—
|
|
5,392
|
|
Proceeds from
interest-bearing research project financing
|
—
|
|
405
|
|
Payment of lease
liabilities
|
(1,063)
|
|
(1,221)
|
|
Repayment of
convertible debt
|
(8,750)
|
|
—
|
|
Repayment of
government loans
|
(469)
|
|
(241)
|
|
Repayment of venture
debt
|
(8,042)
|
|
(5,165)
|
|
Repayment of
interest-bearing research project financing
|
(804)
|
|
(355)
|
|
Interest
paid
|
(5,185)
|
|
(2,464)
|
|
Net cash flows
from financing activities
|
25,380
|
|
37,619
|
|
Net increase
(decrease) in cash and cash equivalents
|
(2,743)
|
|
(6,529)
|
|
Net foreign exchange
difference
|
4
|
|
5
|
|
Cash and cash
equivalents at January 1
|
7,574
|
|
14,098
|
|
Cash and cash
equivalents at end of the period
|
4,835
|
|
7,574
|
|
|
(1) Including
$1.4 million related to the forgiveness of a debt in April
2021
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
(in thousands of
US$, except share and per share amounts)
|
Three months
ended
|
|
Dec 31,
2021
|
|
September 30,
2021
|
|
Dec 31,
2020
|
|
Net IFRS loss as
reported
|
$
(7,731)
|
|
$
192
|
|
$
(11,262)
|
|
Add
back
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
1,861
|
|
1,022
|
|
1,172
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
1,176
|
|
(7,706)
|
|
(111)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
1,219
|
|
1,193
|
|
1,663
|
|
Non-IFRS loss
adjusted
|
$
(3,475)
|
|
$
(5,299)
|
|
$
(8,538)
|
|
IFRS basic loss
per ADS as reported
|
($0.21)
|
|
$0.01
|
|
($0.36)
|
|
Add
back
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.05
|
|
$0.03
|
|
$0.04
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
$0.03
|
|
($0.21)
|
|
$0.00
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.03
|
|
$0.03
|
|
$0.04
|
|
Non-IFRS basic
loss per ADS
|
($0.09)
|
|
($0.14)
|
|
($0.28)
|
|
IFRS diluted loss
per ADS
|
($0.21)
|
|
$—
|
|
($0.36)
|
|
Add
back
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.05
|
|
$0.03
|
|
$0.04
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
$0.03
|
|
($0.21)
|
|
$0.00
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.03
|
|
$0.03
|
|
$0.04
|
|
Non-IFRS diluted
loss per ADS
|
($0.09)
|
|
($0.14)
|
|
($0.28)
|
|
|
|
|
|
|
|
(1) Included in the
IFRS loss as follows:
|
|
|
|
|
|
|
Cost of product
revenue
|
$
14
|
|
$
14
|
|
$
28
|
|
Research and
development
|
555
|
|
487
|
|
647
|
|
Sales and
marketing
|
346
|
|
200
|
|
190
|
|
|
General and
administrative
|
946
|
|
321
|
|
307
|
|
(2) Related to the
difference between contractual and effective interest
rates
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
(in thousands of
US$, except share and per share amounts)
|
Twelve months
ended Dec 31,
|
|
2021
|
|
2020
|
|
Net IFRS loss as
reported
|
$
(20,276)
|
|
$
(54,476)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
5,135
|
|
2,985
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
(3,848)
|
|
13,129
|
|
Non-cash interest on
convertible debt and other financing (2)
|
4,684
|
|
6,355
|
|
Non-cash impact of
deferred tax income (loss)
|
—
|
|
398
|
|
Impact of debt
reimbursement
|
(5,177)
|
|
—
|
|
Non-cash impact of
convertible debt amendment
|
—
|
|
(1,399)
|
|
Non-IFRS loss
adjusted
|
$
(19,482)
|
|
$
(33,008)
|
|
IFRS basic loss per
ADS as reported
|
($0.55)
|
|
($1.94)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.14
|
|
$0.11
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
($0.11)
|
|
$0.47
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.13
|
|
$0.23
|
|
Non-cash impact of
deferred tax income (loss)
|
$0.00
|
|
$0.01
|
|
Impact of debt
reimbursement
|
($0.14)
|
|
$0.00
|
|
Non-cash impact of
convertible debt amendment
|
$0.00
|
|
($0.05)
|
|
Non-IFRS basic
loss per ADS
|
($0.53)
|
|
($1.17)
|
|
IFRS diluted loss per
ADS
|
($0.55)
|
|
($1.94)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.14
|
|
$0.11
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
($0.11)
|
|
$0.47
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.13
|
|
$0.23
|
|
Non-cash impact of
deferred tax income (loss)
|
$0.00
|
|
$0.01
|
|
Impact of debt
reimbursement
|
($0.14)
|
|
$0.00
|
|
Non-cash impact of
convertible debt amendment
|
$0.00
|
|
($0.05)
|
|
Non-IFRS basic
loss per ADS
|
($0.53)
|
|
($1.17)
|
|
|
|
|
|
(1) Included in the
IFRS loss as follows:
|
|
|
|
|
|
Cost of product
revenue
|
$
57
|
|
$
42
|
|
|
Research and
development
|
2,109
|
|
1,394
|
|
|
Sales and
marketing
|
970
|
|
529
|
|
|
General and
administrative
|
1,999
|
|
1,020
|
|
(2) Related to the
difference between contractual and effective interest
rates
|
|
|
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SOURCE Sequans Communications